A sudden drop in the bonds of Shimao Group Holdings Ltd. sparked a broader selloff amid renewed concern over the health of Chinese property firms.
Chinese junk bonds fell 2 US cents after Shimao’s dollar bonds dropped as much as 10 US cents on the dollar, according to credit traders. Trading was halted in three of the company’s yuan bonds after they plunged. Its Hong Kong-listed shares tumbled almost 14%, poised for their biggest loss since 2008.
The firm is looking into market rumors during the weekend that caused the selloff, according to an emailed response to queries from Bloomberg News.